China has intensified its efforts to regulate the cryptocurrency market by extending its crackdown to encompass not only stablecoins, which are cryptocurrencies designed to maintain a stable value by being pegged to traditional currencies or assets, but also the practice of asset tokenization, where real-world assets are converted into digital tokens on a blockchain. This move aims to bolster financial stability and prevent potential risks associated with the rapid proliferation of digital currencies and tokenized assets in the country.
source: https://www.coindesk.com/policy/2026/02/06/china-expands-crypto-crackdown-to-stablecoins-asset-tokenization